The attractiveness of passive forms of investment in Poland

Alicja Fraś , Waldemar Rogowski

Abstract

Summing up; passive investments in Poland are slowly becoming more popular. It should be expected that the development of this market will give rise to growing accessibility and attractiveness. There is still some space for improvement in their results, and the outcomes may turn out to be even more promising when full time series for long term horizons become available. The decrease in fees, which exceeds those on mature markets by several times, can change significantly. The entry of new players onto the market may reduce the total expenses incurred by the investor. This study does not explicitly answer the question as to whether the attractiveness of passive investment is higher than that of active investment. The differences in fees themselves are not big enough to explain the differences in the rates of return after costs. But it may be stated that an essential difference lies in the profitability of funds before costs. However, for such a short time series, it cannot be determined whether the indicated differences are stable or result from incidental market fluctuations. All the more reason why not all the passive instruments performed better in terms of rate of return for the period analysed, as the WIG20 ETFs appeared to be less attractive than other active funds.
Author Alicja Fraś (WE / KTPiPP)
Alicja Fraś,,
- Department of Money Theory and Monetary Policy
, Waldemar Rogowski - Szkoła Główna Handlowa w Warszawie (SGH)
Waldemar Rogowski,,
-
Journal seriesJournal of Management and Financial Sciences, ISSN 1899-8968, (B 13 pkt)
Issue year2016
Vol9
No25
Pages43-60
Publication size in sheets0.85
Keywords in Englishpassive vs active management, investment funds, index funds, ETF
URL http://kolegia.sgh.waw.pl/pl/KZiF/czasopisma/Journal_of_Management_and_Financial_Sciences_JMFS/Documents/Alicja%20Fras_Waldemar%20Rogowski_JMFS_25.pdf
Languageen angielski
Score (nominal)13
ScoreMinisterial score = 13.0, 12-04-2019, ArticleFromJournal
Ministerial score (2013-2016) = 13.0, 12-04-2019, ArticleFromJournal
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